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RNS: Year End Trading Update

Tuesday, 12 December 2017

Synectics plc (AIM: SNX), a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, provides the following update on trading for the year ended 30 November 2017.

Consolidated profits are anticipated to be in line with market expectations. This represents growth of over 10% in underlying profits before tax compared with the year ended 30 November 2016, on revenues that were broadly flat.

The Group’s consolidated operating margin increased primarily as a result of better than anticipated performance in the higher-margin gaming surveillance sector, which was offset by weaker performance in the lower-margin UK on-vehicle market.

After an exceptionally strong year to 30 November 2016, which unusually included two major new casino projects in the Far East, Synectics’ performance in the Gaming sector in the financial year just ended was better than anticipated by the Board, as increasing inroads were made with major casino customers in the US. Deliveries of surveillance systems to the UK bus market were solid in the first half, but declined in the latter part of the year on the back of a 14% decline in UK new bus registrations in the third calendar quarter. Elsewhere, as expected, the oil and gas sector remained subdued and market conditions in the Group’s other sectors remain positive.

Synectics’ net cash at the year end was approximately £3.9 million, up from £2.2 million at 30 November 2016.

The Group’s final audited results for the year to 30 November 2017 will be released on or around 20 February 2018.